Do management consultants need business insurance?
As a management consultant, you’re a leader and you’re not afraid to share your thoughts on the best plan of action. You’re great at crossing your t’s and dotting the i’s.
You’re used to being in control, but there are some things in life that are simply out of anyone’s control. Because plans go awry sometimes, a little protection never hurts. And by protection, we mean business insurance.
What types of insurance are best for management consultants?
You provide businesses with expert advice, so professional liability insurance is definitely a front-runner. General liability and cyber liability insurance are also very important coverages for management consultants to consider.
Professional liability insurance for management consultants
Professional liability insurance, also known as errors and omissions (or E&O), essentially protects you from an unhappy client. Even if a negative outcome isn’t your fault, a client could attempt to hold you liable. And if that happens, you may end up facing a lawsuit.
With professional liability, you will be protected from several claims, including:
- Failure to deliver promised services, even for something as simple as missing a deadline.
- Negligent services, which means your client doesn’t believe your work is on par with industry standards.
- Professional errors, such as a recommendation or service that causes your client to lose money.
- Legal defenses and court fees.
General liability insurance for management consultants
General liability insurance protects you from various things that could go wrong when you run a business. It’s an important part of any business protection plan– no matter how small.
Policy benefits include:
- Property damage: If you accidentally spill your coffee on a client’s smartphone, tablet, or any other expensive gadget, this policy covers repairs or replacement costs.
- Personal/advertising injury: Slander, libel, copyright infringement, and false advertising are covered claims.
- Bodily injury: If someone gets hurt on your property because of you or your employee (regardless of location), medical costs are covered.
- Legal defenses: If you’re facing a lawsuit, court costs are taken care of.
Additional recommended coverages for management consultants
- Cyber liability: If you handle sensitive customer information, this policy protects you from any cyber threats involving potentially exposed data. Should you face a claim, this policy helps pay for things like credit monitoring, legal costs, forensics investigation, and more.
- Business auto: Business auto insurance protects vehicles owned by your business.
- Hired & non-owned auto: This policy covers your company should any vehicles that work on behalf of your business get in an accident. This pertains to vehicles you hire, borrow, or rent. It also includes employees’ personal vehicles while being used for work-related errands.
- Business property: Consultant work requires several devices– smartphones, tablets, computers, and who knows what else. Commercial property is protected in the event that it’s damaged. Note: If you work from home, or keep your gear at home, and something happens, your homeowners policy will typically only cover up to $500 in business property damages.
- Inland marine: If you leave your business premises (past 500 feet), your business property insurance ends. This coverage protects your work items on the go.
Interested in more coverage for less?
A business owner’s policy, or a BOP, combines both general liability and business property insurance into a package deal. The awesome thing about BOPs is that it’s less expensive than purchasing the policies on their own.
Another nice thing about a BOP is that there are several options to add on additional coverages and enhancements to the package.